Government commits additional $25 million for cyclone-affected businesses

Government commits additional $25 million for cyclone-affected businesses | Insurance Business New Zealand

Catastrophe & Flood

Government commits additional $25 million for cyclone-affected businesses

Up to a maximum of $40,000 per business

Catastrophe & Flood

By
Kenneth Araullo

The New Zealand government has approved an additional $25 million in support of businesses affected by Cyclone Gabrielle. This extension follows the earlier $50 million to support businesses in their cashflow needs while insurance claims and payouts are ongoing.

Finance minister and cyclone recovery head Grant Robertson said that the priority has always been to get cyclone-affected businesses up and running from the impact of Gabrielle, with the help of local agencies who are disbursing these funds.

“Demand for grants has been strong, with applications to the local providers managing the funding exceeding the $50 million allocated. Based on the most recent assessment an additional $22 million is required to meet the additional demand, with around 5,800 applications received,” Robertson said in a news release.

The additional funding will allow more firms to be supported for up to $40,000 per business. Robertson said that this funding will be split based on the latest available data per region, with ministers ensuring that it is focused on those where the need is greatest. Applications for this additional funding will close no later than the end of April.

“We are committed to helping people and businesses recover from the cyclone. The way we do that … as we shift from the response to recovery phase will change. We will continue to closely monitor the needs of local communities and work with local agencies, iwi and councils as we move from response to the recovery and rebuild from these extreme weather events,” Robertson said.

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